Slide 1: Coffee Microcaps Investor Presentation ASX Release
BNK Banking Corporation Limited Level 14, 191 St Georges Terrace Perth WA 6000 ASX Release, 5 September 2024 COFFEE MICROCAPS INVESTOR PRESENTATION BNK Banking Corporation Limited (ASX: BBC) (“BNK” or the “Company”) attaches an investor presentation that CEO Allan Savins will deliver to the Coffee M
Slide 2: Investor Presentation – Coffee Microcaps Conference
ASX:BBC For personal use only INVESTOR PRESENTATION COFFEE MICROCAPS CONFERENCE 5 September 2024
Slide 3: BNK – The Bank for Enterprising Australians
BNK – The Bank for Enterprising Australians ASX:BBC For personal use only ASX-listed bank with more than 40 years of experience Direct to consumer Award-winning non-bank deposits home and commercial loan origination platform Goldfields Money merges with Finsure BNK establishes a $250m and Better Cho
Slide 4: The case for investing in BNK Bank
The case for investing in BNK Bank ASX:BBC The bank for Enterprising Australians For personal use only Diversified funding Expansive product Focus on SME market Track record of lending base range growth • Loan book funded through a • Offers a diverse product • Strategic expansion into higher • $1.37
Slide 5: FY24 Results Overview
FY24 Results Overview ASX:BBC Financial results show improved trajectory For personal use only $(6.7)m Statutory NPAT down $2.8m on FY23 $19.3m $21.6m 1.06% Net Interest Income Operating Expenses FY24 NIM down up 3% on FY23 down $1.5m on FY23 9bps on FY23 $(0.9)m Underlying NPAT* up $0.6m on FY23 2H
Slide 6: FY24 Financial Results
FY24 Financial Results ASX:BBC Improvement in underlying NPAT whilst Goodwill Impairment impact on statutory results $(6.7)m $(0.9)m For personal use only Statutory ($’000) Underlying ($’000) Underlying to FY23 %* Net Interest NPAT downIncome $2.8m on 19,290NPAT* Underlying 19,290 ↑ 3% FY23 up $0.6m
Slide 7: FY24 Key Metrics
FY24 Key Metrics ASX:BBC $(6.7)m $(0.9)m FY24 FY23 Change on PCP For personal use only Total Assets $1,725m $1,680m ↑ 3% NPAT down $2.8m on Underlying NPAT* FY23 Loans up $0.6m on FY23 $1,368m $1,350m ↑ 1% $0.27m Deposits $1,731m $1,271m $1,252m ↑ 2% Net Interest Margin Group Assets 106bps 115bps ↓
Slide 8: 2H24 Financial Results
2H24 Financial Results ASX:BBC Improvement in underlying NPAT from 1H24 $(6.7)m $(0.9)m For personal use only 2H24 Underlying ($’000) 1H24 Underlying ($’000) Variance %* NPAT down $2.8m on Underlying NPAT* Net Interest FY23 Income 10,735 8,555 ↑ 25% up $0.6m on FY23 Other Income 676 409 ↑ 65% $0.27m
Slide 9: BNK Loan Book, Deposits & Net Interest Income
BNK Loan Book, Deposits & Net Interest Income ASX:BBC Transitioning away from lower margin prime residential ASX:BBC Loan book ($m) Deposit book ($m) Net Interest Income ($m) For personal use only Overall Loan Book steady in FY24 with a Deposit Book steady in FY24 Continued upward trend in NII focus
Slide 10: Fixed Rate Home Loans
Fixed Rate Home Loans ASX:BBC Remaining Fixed Rate maturities provide incremental margin uplift potential For personal use only 62.5 • Remaining Fixed Rate HL book due to rollover during the next 18 months. • Working with our customers to provide attractive pricing and active retention. • NIM upside
Slide 11: Risk-managed growth and diversification in the BNK-funded lending portfolio
Risk-managed growth and diversification in the BNK-funded lending portfolio ASX:BBC ASX:BBC Stable risk profile despite increase in higher margin loans Portfolio By Loan Type For personal use only On Balance Sheet Loans FY24 FY23 FY24 FY23 Stable position Slight portfolio with borrower shift with eq
Slide 12: Strong Cornerstone Portfolio
Strong Cornerstone Portfolio ASX:BBC BNK has focused on changing the lending book composition in FY24 with greater priority on ASX:BBC higher margin lending For personal use only High quality customers Loan size increased • Approx. 44% of loan book are ahead in their • Average loan size increased fr
Slide 13: Credit Quality & Arrears
Credit Quality & Arrears ASX:BBC Increase in Arrears as higher interest rates impact but showing signs of stabilising For personal use only Loan Book Arrears breakdown Residential book Arrears ageing (% of Residential loan book) 5.00% Date (31-60 days) (61-90 days) (90+ days) Total (31 days+) 4.50%
Slide 14: Management with a Proven Track Record
Management with a Proven Track Record ASX:BBC In implementing and executing expansion strategies For personal use only Allan Savins – Chief Executive Officer Stephen Kinsella – Chief Financial Officer • Over 40 years of experience in the financial services industry. • Over 30 years of experience in
Slide 15: Highly Experienced Board
Highly Experienced Board ASX:BBC Driving the next stage of growth For personal use only Jon Denovan - Non-Executive Director Warren McLeland - Non-Executive Director • Leading mortgage industry authority on regulation & compliance. • Former stockbroker and investment banker with over 35 • First hono
Slide 16: Summary & Outlook
Summary & Outlook ASX:BBC Building a strong foundation for SME growth For personal use only ✓ Deliver sustainable underlying profitable growth. ✓ Strategically pursue high margin and/or high return of capital opportunities. ✓ Optimise and reallocate Risk-Weighted Assets: Reducing low-profit resident
Slide 17: Enquiries
Enquiries ASX:BBC For personal use only Investor Enquiries Michelle Loh Cannings Strategic Communications Email: michelle.loh@canningscomms.com.au Telephone: +61 497 834 937 Media Enquiries William Roberts Cannings Strategic Communications Email: william.roberts@canningscomms.com.au Telephone: +61 4